With the deep analysis of the above alternatives, it is recommended that the company ought to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not only introduce brand-new and ingenious items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share rates too, as financiers want to invest more in companies with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by establishing particular short term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan The Risk Management Foundation Of The Harvard Medical Institutions Inc must carry out various activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create the majority of its earnings.
• Analyze the existing target audience as well as the marketplace segment which is not consist of in the business's circle.
• Examine the existing financial data to determine the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to handle. Get most favorable organizations with a strong commitment to health, to develop the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about The Risk Management Foundation Of The Harvard Medical Institutions Inc values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste aspect, as the base for the The Risk Management Foundation Of The Harvard Medical Institutions Inc as a company producing healthy products has actually been constructed under midterm plan and now the company might move towards taste element also to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new products.
